Program Introduction

May 18, 2011

Joseph G.PintoChief Operating Officer & Vice President

Performance Review Institute

Definition: PRI

• The Performance Review Institute is a not-for-profit affiliate of SAE whose mission is to globally provide customer focusedsolutions designed to improve process and product quality by adding value, reducing total cost and promoting collaboration among stakeholders in industries where safety and quality are shared goals.

• PRI administers Nadcap.

Definition: Nadcap

• The leading worldwide cooperative program of major companies designed to manage a cost effective consensus approach to special processes and products and provide continuous improvement within the aerospace and automotive industries.

Nadcap Customers

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Subscribers:

The users (e.g., OEMs, government agencies), are the customers of the PRI product -- the certification information.

Suppliers:

The customers of the PRI processes (e.g., scheduling, auditing, billing, audit review, issuing certs, etc.,) are the auditees --suppliers being audited.

Nadcap Subscribers• 309th Maintenance Wing-Hill AFB

• AgustaWestland

• Air Force

• Alenia Aeronautica SpA

• Avio SpA

• BAE Systems – Military Air Solutions (MAS)

• BAE Systems

• Ball Aerospace & Technology Corporation

• The Boeing Company

• Bombardier Inc.

• Defense Contract Management Agency (DCMA)

• EADS Corporation

– Airbus

– EADS CASA

– Eurocopter

– Astrium

– Cassidian

– Aerolia

– Premium Aerotech

• GE Aviation

• General Dynamics

• General Services Administration (GSA)

• Goodrich Corporation

• Hawker Beechcraft Corporation

• Heroux Devtek Inc. (Landing Gear Division)

• Honeywell Aerospace

• Israel Aircraft Industries

• Latecoere

• Liebherr-Aerospace SAS

• Lockheed Martin Corporation

• M7 Aerospace LP

• MTU Aero Engines GmbH

• Northrop Grumman Corporation

• Parker Aerospace Group

• Raytheon Company

• Rockwell Collins, Inc.

• Rolls-Royce Corporation

• Rolls-Royce PLC

• SAFRAN Group

• Sonaca

• Spirit AeroSystems

• Textron Inc.

– Bell Helicopter

– Cessna Aircraft Company

– Textron Systems

• Thales

• Triumph Group Inc.

• United Technologies Corporation

– Hamilton Sundstrand

– Pratt & Whitney

– Pratt & Whitney Canada

– Sikorsky Aircraft

• United Space Alliance

• Volvo Aero

Nadcap Audits

1208

1466

2437

2852

3295

36783870

4015

4389 44064600

3881 3946

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Plan2012 Plan2013 Plan

Num

ber

of

On S

ite A

udit

s

14

1 13 4 3 4 4

2 2 1 111

1

5

2

13

22

1 0

10

20

30

40

50

60

70

0

2

4

6

8

10

12

14

16

18

Accum

ula

ted Tota

l Pri

mes

New

Pri

mes

per

Year

Year

Americas Europe

Timeline of Subscribers

Hawker

Beechcraft

Pratt & Whitney

(US)

Pratt & Whitney

(Canada)

GE

Sikorsky

Honeywell

RR plc

RR Corp

AVIO

Northrop

Grumman

GSA

Hamilton

Sundstrand

Vought

Bell

Helicopter

DCMA

Cessna

Boeing

MD

Helicopters

Lockheed

Martin Airbus

EADS MTA

Eurocopter

EADS Astrium

EADS Defense

Goodrich

Alenia

BAE

Systems (US)

Rockwell

Collins

Bombardier

SONACA

MTU

SAFRAN Group

(Snecma Services,

Hispano-Suizo,

Aircelle, Messier-

Bugatti, Messier-

Dowty, Messier-

Services, Labinal,

Techspace Aero,

Snecma Propulsion

Solide, Microturbo,

Cinch and Globe

Motors)

Latecore

Liebherr

Spirit

Textron Systems

Ball Aerospace

Heroux Devtek

BAE MAS

Thales

Parker

Aerospace

Group

United Space

Alliance

Volvo Aero Corp.

Genl. Dynamics

IAI

309th Maint.

Wing-Hill AFB

Raytheon Co. Agusta

Westland

M7 Aerospace

Nadcap Programs Special Processes

– Nondestructive Testing (NDT)

– Materials Testing (MTL)

– Heat Treating (HT)

– Coatings (CT)

– Chemical Processing (CP)

– Welding (WLD)

– Nonconventional Machining & Surface Enhancement

(NMSE)

– Conventional Machining (CM)

Systems & Products

– Aerospace Quality Systems (AQS) : AC7004

– Fluid Distribution Standards (FLU)

– Elastomer Seals (SEALS)

– Sealants (SLT)

– Composites (COMP)

– Electronics (ETG)

Nadcap Procedure Hierarchy

AS7003Aerospace Standard which documents the

requirements for implementing Nadcap industry consensus-based accreditation

programs.

Quality ManualDocument stating the quality policy and describing the quality system of

the organization.

NOP (Nadcap Operating Procedure)Documents detailing the specific procedures by

which Nadcap operates.

NTGOP (Nadcap Task Group Operating Procedure)

Documents describing the scope

and general operating procedures

for each specific PRI/Nadcap

commodity program.

NIP (Nadcap Internal Procedure)Documents detailing

specific procedures by which PRI/Nadcap Staff

operates.

Audit Handbook

Defines the role and responsibilities for Nadcap Auditors, and provides technical and administrative clarifications to facilities and

standardizes the audit process.

Nadcap eAuditNet Process

Task Group

Approval

SuppliersPRI Audit Scheduled

Auditor Assigned

Request Audit

Audit Completed

PRI Technical Staff Review

Issue Cert

1 2 3 4

5

67

89

Supplier Action PRI Staff Action

Prime Action

Audit

Checklist

Industry experts manage all key steps

Shared Program Management

Audit Conducted

Audit Results

Corrective Actions As Required

Process Evaluation/Improvement

Auditor Qualification & Selection

Nadcap - Industry Working Together

Task Groups

(Primes)SuppliersNadcap Staff

Establish

Audit

Criteria

Audit Criteria (AC):

Document containing checklists or other surveillance tools to be utilized in the course of determining compliance to established

industry standards and prime requirements.

Relationship between Audit Criteria (AC), Audit Handbook and Prime Requirements

Audit

Handbook

AC7XXX

Audit Criteria

Job Audits

Industry

Standards

Prime

Requirements

Nadcap Benefits to Industry

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1. Streamlined Requirements

One

Industry

Requirement

MultipleCustomer Requirements

Nadcap Benefits to Industry

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2. Reduced Number of Audits

IndividualCustomerAudits

One Audit

Nadcap Benefits to Industry

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3. Shift in Focus

Second Party Audit

Customer Audit

Airbus

BAE Systems

Boeing

Bombardier

Eurocopter

Honeywell

Lockheed Martin

Rolls-Royce

Nadcap Benefits to Industry

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Tangible Results

A Subscriber reports annual saving of >$1Million

Subscribers are achieving technically superior audits.

One Supplier reported 97% reduction in rework as result of systematic improvements prompted by Nadcap requirements*

On average, 40% reduction in audits following

Nadcap accreditation*

*Surveys performed on the Nadcap accredited supplier base

Quality Improvements for Suppliers (SSC 2009 Survey Results)

An increasing percentage of Nadcap accredited companies report quality improvement in the area(s) related to their Nadcap accreditation(s).

2003 2005 2007 2009

Nadcap Accredited Company Perspective

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• Rework rate reduced from 5 – 6 per 100 to 2 – 3 per

1000

• Scrap rate reduced from 1 in 1000 to 1 in 3000

• Escapes reduced from 1 per 3 - 5,000 to 1 per 6 -

10,000

• Customer visits dramatically reduced

• Quality survey & audit team reduced and refocused

In June 2010, a web poll asked: Do you believe that Nadcap contributes to the overall aerospace industry’s safety record?

198 responses

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Benefits of Nadcap to Industry

Nadcap Subscriber Perspective 1

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“Work together... to right size our processor base and continually improve certification and oversight...

A quality initiative that will lead overall industry cost reductions.”

Nadcap Subscriber Perspective 2

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“The objective is to have a high performing self

managed supply base”

Future Nadcap Meetings

18 – 23 October 2011

Register online @ www.PRI-Network.org

Date Location

20-24 June 2011 London, UK

17-21 October 2011 Pittsburgh, PA USA

20-24 February, 2012 San Diego, CA USA

25-29 June, 2012 Berlin, Germany

Benefits • Primes and Suppliers network among industry peers• Participation in free training • Task Groups work on technical matters (audit checklists)• Continual improvements made to program • Nadcap Management Council creates Policy• Engage with existing and potential customers

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Pittsburgh – London – Beijing – Nagoya

International Headquarters

Performance Review Institute

161 Thorn Hill Road

Warrendale

Pennsylvania 15086-7527

USA

Performance Review Institute

1 York Street

London

W1U 6PA

UK

Joe Pinto

Chief Operating Officer & Vice

President

jpinto@sae.org

+1 724 772 7175

Seema Martin

Director of European Operations

seema.martin@pri-europe.org.uk

+44 870 350 5011

Discussion Points• Nadcap In General

– How do Subscribers, Suppliers, auditors and so on, interact with PRI?– Are Subscriber and Supplier processes audited through the Nadcap program?– Does Nadcap certify personnel or the processes?– Is Nadcap used for military production or only for civil aircraft?– How are new Special Processes created?

• Nadcap in Russia– How does PRI expect to understand the aerospace industry in Russia?– What does PRI stand to gain from entering Russia?– Russian specifications are different, how will they be harmonised?– Timeframe; how long will it take for subscribers and suppliers to take part in Nadcap?– How can the integrity of the Russian aerospace industry’s competitive advantage be ensured if Nadcap

based on collaborative sharing of technical information?

• Nadcap in relation to regulatory bodies: areas of cooperation

– FAA – EASA

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